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PRACTICE EXAM AND HOME WORK 01 Computer Packages NOTE: Read each question carefully and provide detailed answer. Make a clear writeup either in Microsoft word document or on paper sheets. Provide your full name and registration number at the top. Discussion is allowed but copying is NOT allowed instead copying will return ZERO marks. 1. Define the following excel functions with examples (Note: you can See Excel Help). SUM, AVERAGE, STANDARD DEVIATION, VARIANCE, MINIMUM, MAXIMUM, QUARTILES (Q1, Q2, Q3), MEDIAN and IF function 2. Suppose you are provided with the following data containing marks of 30 students in economics out of 100 marks. RNO 1 2 3 4 5 6 7 8 9 10 MARKS RNO 57 30 92 45 21 87 28 64 24 54 11 12 13 14 15 16 17 18 19 20 MARKS RNO 55 40 74 51 75 83 25 66 89 61 21 22 23 24 25 26 27 28 29 30 MARKS 27 94 49 74 97 77 28 42 81 58

Copy this data in excel sheet and answer the following questions by using excel commands, remember you have to provide suitable excel command as well as the result obtained via command. a) Calculate maximum score in the class and interpret it? (Do it using two ways: 1. By Sorting and 2. By Excel command and explain method). b) Calculate minimum score in the class and interpret it? (Do it using two ways: 1. By Sorting and 2. By Excel command and explain method). c) Calculate average score and interpret it? d) Calculate standard deviation of the score and interpret it? e) Calculate variance of the score and interpret it? f) Calculate first quartile and interpret it? g) Calculate second quartile and interpret it? h) Calculate third quartile and interpret it? i) Calculate median scores and interpret it. Also check that it is same as second quartile.

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3. Suppose you are provided the following time series data on Y (PERSONAL CONSUMPTION EXPENDITURE) AND X (GROSS DOMESTIC PRODUCT, 19821996), BOTH IN 1992 BILLIONS OF DOLLARS Year Y X

1982 3081.5 4620.3 1983 3240.6 4803.7 1984 3407.6 5140.1 1985 3566.5 5323.5 1986 3708.7 5487.7 1987 3822.3 5649.5 1988 3972.7 5865.2 1989 4064.6 6062 1990 4132.2 6136.3 1991 4105.8 6079.4 1992 4219.8 6244.4 1993 4343.6 6389.6 1994 4486 6610.7 1995 4595.3 6742.1 1996 4714.1 6928.4 Data Source: Economic Report of the President, 1998, Table B2, p. 282. a. Make an XY-Scatter plot and provide suitable titles (main title, x-axis title, y-axis title) b. Suppose we want to fit a regression line, Y=a+bX i. Find the values of a and b by looking at the graph. ii. Interpret a and b. 4. Suppose X is a random variable which follows normal distribution with mean and variance. a. Write the probability density function of X b. Plot the density function of X where X is a standard normal random variable. c. Change the mean from 0 to +1 and then from 0 to -1and observe the change in the shape of normal distribution and interpret. d. Change the SD from 1 to +0.5 and then from 1 to 1.5and observe the change in the shape of normal distribution and interpret. 5. Cumulative density function (CDF) is defined as: CDF(X=x)=P(X<=x), plot the CDF of X where X follows a standard normal distribution for X=-3, -2, , +2, +3. 6. Consider a standard normal random variable X, i.e. X~N(0,1). Find the following areas under the normal curve using formulas by hand as well as using excel NORMSDIST function. Provide full details. a. P(-1 X +1)=______________ b. P(-2 X +2)=______________ c. P(-3 X +3)=______________ d. P(0 X +1)=______________ e. P(-1 X 0)=______________ f. P(0 X +2)=______________

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g. P(-2 X 0)=______________ h. P(0 X +3)=______________ i. P(-3 X +0)=______________ j. P(-1 X +2)=______________ k. P(-2 X +1)=______________ l. P(-1 X +3)=______________ m. P(-3 X +1)=______________ n. P(-2 X +3)=______________ o. P(-2 X -3)=______________ p. P(2 X 3)=______________ 7. Suppose X is random variable having normal distribution with mean 50 and standard deviation 10. Use NORMDIST(x,mean,sd,true) command to find the following probabilities (Provide full details). a. P(X 50)=______________ b. P(40 X 60)=______________ c. P(50 X 70)=______________ d. P(30 X 50)=______________ e. P(30 X 40)=______________ f. P(40 X 60)=______________ g. P(X>=60)=______________ h. P( X 60)=______________ i. P(45 X 55)=______________ 8. State Law of Large Numbers (LLN) and verify it for the following cases (write commands and workings steps clearly): a. Coin-Toss Example b. Die-Roll Example 9. Explain the steps involved in loading/activating the DATA ANALYSIS Excel ADD-IN. STEP 1: STEP 2: STEP 3: STEP 4: STEP 5: STEP 6:

10. Suppose you are provided data on income (Y) and education (X) of 40 individuals. a. Explain how you will use DATA ANALYSIS to get the Correlation matrix (explain working steps). STEP 1: STEP 2: STEP 3: STEP 4: STEP 5: STEP 6:

b. Suppose you want to estimate a linear regression model, Y=a+bX+error, Write working steps of estimating the regression line using DATA ANALYSIS. STEP 1: STEP 2: STEP 3: STEP 4: STEP 5: STEP 6:

11. Consider the Quadratic Function, Q(X)=X2-7X+12 a. Define roots of an equation and explain how you will find the roots of the above function using SOLVER (explain working steps). STEP 1: STEP 2: STEP 3: STEP 4: STEP 5: STEP 6:

b. Define maxima and minima of a function. Explain how you will MAXIMIZE the above function using SOLVER (explain working steps).

STEP 1: STEP 2: STEP 3: STEP 4: STEP 5: STEP 6:

12. Replicate Do exercises given in excel lessons covered in class.